Tax & Legal Update
Employers’ perspective on plug-in hybrid vehicles
Until recently, Czech tax and labour-law legislation lacked any regulation of plug-in hybrid vehicles. If employers provided such vehicles to their employees for both business and private purposes, the determination of the employee’s non-monetary…
GFD publishes information on research and development allowances
In its information, the General Financial Directorate (GFD) comments on the amended regime for claiming research and development allowances, especially with respect to the new duty to notify the tax administrator of the intention to claim such an…
Quick fixes: chain transactions and transport allocation
The Czech amendment to the VAT Act implementing quick fixes is still awaiting the second reading in the chamber. Its effectiveness is therefore being postponed once again. In the meantime, the European Commission has issued its explanatory notes on…
Amendment to Tax Procedure Code heading to the Senate – summary of major changes
An amendment to the Tax Procedure Code has passed the Czech Chamber of Deputies in its third reading. According to the Minister of Finance, the amendment will allow for the implementation of an online tax authority, formed on the ground plan of a…
How to shield your business from the impact of COVID-19
The first cases of COVID-19 (Coronavirus) infection have been confirmed in the Czech Republic. So far, nobody has been able to predict with certainty what course this epidemic will take and how the Czech economy will be affected. Hence,…
Amendment to the Labour Code (part 1): at least 160 hours of vacations for all
An extensive amendment to the Labour Code has been on the deputies’ agenda since January. In the upcoming issues of Tax and Legal Update, we will summarise for you the amendment’s major changes. In the first of a series of articles, we will look…
Labour Inspection Office focuses on concealed mediation of employment – CZK 10…
The fact that illegal work is closely watched by the Czech Labour Inspection Office is nothing new for employers. ‘Svarc’ systems (where workers formally maintain a self-employed status while in fact carrying out dependant work) or the employment of…
Municipal Court in Prague: tax returns declaring lower tax may not be filed after…
The deadline for filing an additional tax return is the end of the month following the month in which a taxpayer learned that the tax concerned had been determined incorrectly, irrespective of whether an additional tax return declares a lower or…
New CRD and CRR
The Ministry of Finance has prepared a bill implementing the CRD V directive and CRR II regulation. The new EU legislation brings changes affecting mainly the banking sector as it revises the rules of capital adequacy and capital reserves and…
Unexpected CJEU judgment: commissionaire structure application
In Case C-707/18, regarding Romanian law, the Court of Justice of the EU (CJEU) dealt with an issue concerning the purchaser who in their own name and at their own expense ensured administrative acts necessary to complete a sale of plots of land.…
Ministry of Finance income tax plan for 2021
2020 has just begun, but two new amendments to the Income Tax Act for 2021 are already being discussed. The ministry is planning to introduce a lump-sum tax for selected individuals, monetary contributions for employee meals and the cancellation of…